Tag Archives: Clean energy

California Public Utilities Commission approves nearly 100% increase in exit fees for CCA customers

Repost from the San Francisco Chronicle
[IMPORTANT INFORMATION: CLICK HERE – The “Power Charge Indifference Adjustment” (PCIA) and its impacts on customers who are served by alternative green energy companies (CCAs).  Unfortunately, the approved increase is not for a one-time fee, but rather a monthly fee that is tied to the usage on each electric account. It is charged on a kWh basis for all customers using CCA service.
Other proposed ongoing and monthly PGE penalties for solar customers were “proposed for rejection” by the Public Utilities Commission.  Stay tuned for their vote on January 28!  See also the Chronicle’s editorial on this, State regulators help advance rooftop solar.  – RS]

Customers of clean energy programs hit with fee increase

By Lizzie Johnson, December 17, 2015 7:53pm
PG&E and other big utilities also proposed cutting the amount of compensation that solar homeowners receive for excess electricity that they export to the grid. Photo: Lacy Atkins, SFC
PG&E and other big utilities also proposed cutting the amount of compensation that solar homeowners receive for excess electricity that they export to the grid. Photo: Lacy Atkins, SFC

The California Public Utilities Commission voted Thursday to allow a nearly 100 percent price increase on exit fees for customers leaving Pacific Gas and Electric Co. for green energy programs like CleanPowerSF and Marin Clean Energy, which will make those and similar programs more expensive.

Many of the programs — where local governments buy green electricity for their residents, while private utilities own and operate the electrical grid — will be undermined financially by the uptick in the charge, called the Power Charge Indifference Adjustment, their officials say.

“We are not surprised that the increase was approved,” said Marin Clean Energy spokeswoman Alexandra McCroskey. “We are disappointed. Our primary frustrations come from the fact that we are becoming almost liable for the market fluctuations for both ourselves and PG&E. If PG&E isn’t planning appropriately for people leaving for community choice aggregation programs, the PCIA will continue to increase. It’s poor planning.”

Under the increase, which is effective Jan. 1, customers making the switch to local green energy programs will face a heftier exit fee. Marin Clean Energy customers are projected to pay more than $36 million, up from $19.3 million in 2015. The cost for each residential customer would nearly double from about $6.70 each month to $13.

In San Francisco, the proposed exit fee for residents moving to CleanPowerSF would jump by 100.26 percent. Because the city energy program is designed to absorb costs for its customers, it would decrease the program’s revenue by $8.4 million.

Win for consumers

This month, PG&E and other big utilities also proposed cutting the amount of compensation that solar homeowners receive for excess electricity that they export to the grid, in addition to adding new monthly fees targeting solar homeowners. The CPUC released a proposed decision on the matter this week rejecting the fees. A vote is scheduled for January.

“Overall, we didn’t convince three commissioners to rule our way on the PCIA,” said Barbara Hale, assistant general manager for power at the San Francisco Public Utilities Commission. “The fee is going to double, and that’s tough for us. But we are marching forward with our CleanPowerSF program, which will launch this spring. We are still moving forward.”

Hundreds of protesters came from as far as San Diego to oppose the fee increase at Thursday’s meeting in San Francisco. They carried homemade signs reading “Stand Up to Natural Gas!” and “CPUC: Consumers Pay Again?!” Public comment on the change stretched for more than two hours.

“We’ve achieved a great deal, but there is this overhang of costs that were necessary to kick-start the industry,” said CPUC Commissioner Mike Florio. “The reason the PCIA is so high is because of high-cost renewable contracts that PG&E was required by law to enter into, and that this commission approved. I don’t think it’s fair to let one group of customers escape from paying those historic costs and simply load those on the remaining customers. That’s what the PCIA is all about.”

Charge required by law

PG&E originally filed an application to raise the fee by 70 percent in June, but submitted another request last month to as much as double it. The fee helps the power company pay for energy it contracted for when it had more customers, preventing remaining patrons from bearing the brunt of the costs. The charge is required by law and determined by a formula implemented by the CPUC in 2011.

The fee is influenced by several market factors, including the price of energy, which fluctuates from year to year, said David Rubin, PG&E’s director of service analysis. The cost of power is now cheaper, meaning the difference between what PG&E paid for in its contracts and the price today is higher.

“The PCIA is going up because it is based very specifically on the difference between the cost of supplies in our portfolio which are based on contracts we signed several years ago when renewable prices were higher,” Rubin said. “If dynamics were different, the PCIA would go down.”

Process has critics

PG&E performs the calculation annually and submits the annual filing to the commission for approval. But to calculate the fee increase, some of the inputs must include confidential contract information. Critics say the numbers going into this ‘black box’ prevent outsiders from replicating the formula, and that the increase is another attempt by PG&E to undermine fledgling green energy programs, like Peninsula Clean Energy, which will provide electricity in San Mateo County beginning in August.

“The fee is almost completely redacted,” said Francesca Vietor, president of the San Francisco PUC. “It is extremely difficult for us to know what an affordable rate for our program is when we don’t have a transparent process.”

The CPUC also ordered in its decision that a workshop be held on Feb. 16 to address the methodologies and inputs used for calculating the PCIA charge.

“One day you’re a hero, the next day you’re a goat,” CPUC President Michael Picker said. “We are in the nature of balancing decisions. But we will continue to scrutinize the PCIA formula and balance different interests equally.”

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NY Times: Nations Approve Landmark Climate Accord in Paris

Repost from the New York Times – Science
[Editor:  See also the Times’ Nations Approve Landmark Climate Accord in Paris.  – RS]

What Does a Climate Deal Mean for the World?

Times staff, Dec. 12, 2015

A group of 195 nations reached a landmark climate agreement on Saturday. Here is what it means for the planet, business, politics and other areas.

An event at the United States’ pavilion during the Paris climate conference, known as COP21. Credit Christophe Ena/Associated Press
The Planet

The planet is under threat from human emissions, and the Paris climate deal is, at best, a first step toward fixing the problem. Ice sheets are starting to melt, coastlines are flooding from rising seas, and some types of extreme weather are growing worse. Yet some of the consequences of an overheated planet might be avoided, or at least slowed, if the climate deal succeeds in reducing emissions. At the least, by requiring regular reviews, the deal lays a foundation for stronger action in the future. – JUSTIN GILLIS


Christiana Figueres, the United Nations climate chief, left; United Nations Secretary-General Ban Ki-moon; Laurent Fabius, the French foreign minister; and President François Hollande of France, on Saturday after the Paris climate accord was adopted. Credit Christophe Petit Tesson/European Pressphoto Agency
Global Politics

Strange bedfellows emerged during the Paris negotiations, with industrial powerhouses such as the European Union joining with Pacific island nations and former adversaries, like China and the United States, swapping brinksmanship for bonds over joint action to cut fossil fuel emissions. The pact could leave more geopolitical shifts in its wake. It could further move the energy balance of power away from the developing world toward the industrialized countries, boost the economy in technology economies like the United States and Japan as they develop solutions for the generation and distribution of renewable energy, and create economic stars out of relatively poor countries with an abundance of sun and wind for renewable energy. On the other hand, major oil producers like Russia and Saudi Arabia, already weakened by the slide in the price of oil, could shed some power. – MELISSA EDDY


President Obama Credit Gabriella Demczuk for The New York Times
American Politics

The Paris accord is a triumph for President Obama and Secretary of
State John Kerry, who both lobbied hard for it, but it has outraged
many Republicans who are skeptical of the extent of human-caused
climate change and believe the deal favors environmental ideology over economic reality. The environment has not typically played a major role in voters’ choices, and the issue will most likely be overshadowed in the current election cycle by fears of terrorism, though the drought in California and severe weather in many parts of the country have raised concerns for many Americans. The Republican-controlled Congress can do little to stop the deal, which is not considered a treaty under United States law, though Congress would need to sign off on any new money to help other countries adapt to climate change — an important aspect of the American commitment to the accord. – SEWELL CHAN


A worker inspected solar panels at a solar farm in Dunhuang, China. Credit Carlos Barria/Reuters
Business

The ambitious targets included in Saturday’s deal for limiting the rise in global temperatures may help companies involved in renewable energy and energy efficiency by expanding their markets. Setting a high bar may also make the energy industry attractive for innovators and venture capitalists, increasing the chances of sweeping shifts in what has been a conservative business. The agreement may make life difficult for some of the incumbent companies like electric utilities and coal producers, whose product emits high levels of carbon dioxide. – STANLEY REED


Environmental activists and supporters at a rally in Los Angeles last week called for action on climate change. Credit Mark Ralston/Agence France-Presse — Getty Images
American Citizens

The average American most likely will not feel an immediate effect from the Paris deal. There will be greater emphasis on more efficient electrical products, homes and vehicles. Jobs could be created through the construction of a new energy infrastructure, the maintenance of solar fields and the development of new transportation systems that move away from dependence on the gas pump, as Secretary of State John Kerry has said. Or, as Republicans warn, Americans could see a loss in jobs and American economic competitiveness, as developing economies with less stringent targets are allowed to grow at American’s expense. The deal’s intended long-term effect: avoiding the catastrophic effects of climate change and leaving behind a healthier planet. – MELISSA EDDY

 

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NRDC: Paris Climate Agreement Explained

Repost from the Natural Resources Defense Council

Paris Climate Agreement Explained

By Susan Casey-Lefkowitz, Director of Programs with Emily Cousins, December 12, 2015
Credit: Shun Kambe

How we’ll deliver on the promise of ambitious climate action.
The global community signed an historic agreement today at the Paris climate talks to tackle the threat of climate change and accelerate the shift to clean energy around the world. This is a momentous breakthrough. Nearly 200 countries have pledged to reduce their climate change pollution, strengthen their climate commitments every five years, protect people living on the front lines of climate impacts, and help developing nations expand their clean energy economies.

Most important, this agreement sets ambitious goals. It calls for holding global temperature rise to 1.5 degrees Celsius, with a first step of keeping us at no more than 2 degrees of warming.

Reaching the 2-degree target is essential to prevent catastrophic climate impacts, but scientists say it still leaves us open to dangerous levels of rising seas, food insecurity, and extreme drought. It would make the Marshall Islands and other island nations uninhabitable and expose countless vulnerable communities to deadly harm. Keeping the temperature rise at no more than 1.5 degrees will sustain these communities and create a brighter, more stable future for our children and grandchildren.

This is an ambitious goal, but the past two weeks in Paris confirm it is achievable.

In Paris, an action agenda emerged out of a groundswell of climate action from cities, regions, businesses, investors, trade unions, and many others. Mayors and governors described what they are already doing to reduce carbon pollution and how they plan to do more. Multinational corporations said they are cutting carbon pollution across their operations. Financial institutions reported that renewable energy is a better investment than fossil fuels. Leaders from developing nations explained that clean energy is helping to generate economic growth and bring people out of poverty. And thousands of people from all over the world stood up for climate action. This groundswell has the backs of our national leaders in implementing ambitious climate policies. This is what climate leadership looks like.

The low-carbon transition is already underway. Now the Paris agreement calls on us to return home, pick up the pace, and go faster into the clean energy future. And it gives us the tools to hold our government leaders accountable.

In China, that means building on the country’s commitment to implement a cap-and-trade program and increase non-fossil-fuel energy sources to 20 percent of total energy by 2030. In India, that means leapfrogging over dirty fossil fuels and using clean, renewable, and efficient energy to power its growth. Meeting the country’s solar mission alone will create 1 million jobs. India has already vowed to increase renewable energy sixfold by 2020 and to set mandatory efficiency standards for buildings by 2017.

The United States can also build on existing progress. All 50 states are on track to implement the Clean Power Plan for limiting carbon pollution from power plants; they need to focus on doing this through energy efficiency and an increase in wind and solar. We can continue to improve fuel efficiency standards and move to a combination of electric vehicles and smarter growth in transportation. Next up, we’ll work on getting existing oil and gas facilities to reduce their methane emissions and on the phase-out of fossil fuel development on federal lands and in federal waters. And U.S. businesses should continue not only to improve their own energy efficiency but to band together to advocate for stronger clean energy and climate policies.

This work won’t be easy. The Paris agreement — and our obligation to future generations — demands that nations transform how we think about electricity, transportation, industry, methane from fracking, HFCs from air conditioning, agriculture, and other contributors to climate change. It also requires helping developing countries face the challenges of poverty alleviation, energy equity, and climate justice. And here in the United States, it entails going up against entrenched fossil fuel interests and those politicians who persist in denying climate change.

These are significant hurdles, but citizens, businesses, and political leaders around the globe have made it clear that we support strong climate action. This momentum will carry us forward. And the Paris climate agreement and action agenda will provide the road map.

Irina Bokova, the director-general of UNESCO, said at an NRDC event last week, “When we speak about climate, we speak about humanity.” Our future is at stake here. For the human community to thrive, we need a stable climate. The Paris agreement and commitments will help ensure that our families, nations, and societies can flourish for generations to come.

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